Bitcoin Holds Steady at $67K as Investors Await Key US Data and Fed Signals
Bitcoin traded largely unchanged on Wednesday, stabilizing after recent losses as investors turned cautious ahead of key U.S. economic data and upcoming Federal Reserve comments. Risk appetite remained subdued, limiting demand for speculative assets such as cryptocurrencies.
The world’s largest cryptocurrency gained just 0.2% to $67,170 by 09:22 ET (14:22 GMT). The modest move followed a sharp correction that saw Bitcoin fall nearly 50% from its October record high.
Strategy Buys $168 Million Worth of Bitcoin
Strategy Inc. (NASDAQ: MSTR), the largest corporate holder of Bitcoin, disclosed on Tuesday that it purchased 2,486 coins for $168.4 million over the past week. The company now holds a total of 717,131 Bitcoin.
The latest acquisition was made at an average price of $67,710 per coin, slightly below current market levels. It marked Strategy’s third Bitcoin purchase in February, funded through additional stock issuance.
Earlier this week, Strategy stated it could withstand a Bitcoin price drop to $8,000 while still meeting its debt obligations. However, the comments drew criticism from some investors concerned about potential equity dilution if the company continues issuing shares to finance Bitcoin purchases.
The firm has become a focal point for Bitcoin investors. Market participants worry that a prolonged downturn in Bitcoin prices could pressure the company to liquidate part of its holdings to service debt.
Ark Invest Buys Coinbase Shares
Cathie Wood’s Ark Invest increased its exposure to Coinbase, purchasing 41,453 shares worth approximately $6.9 million, according to the firm’s latest trading update.
The majority of the purchase was allocated to the ARK Innovation ETF, which acquired 29,689 shares valued at about $4.9 million. The ARK Next Generation Internet ETF bought 7,525 shares, while the ARK Fintech Innovation ETF added 4,239 shares.
The move signals a shift in strategy after Ark reduced its Coinbase position earlier this month.
Altcoins Trade Sideways Ahead of Fed Minutes
Broader crypto markets remained rangebound on Wednesday. Most altcoins struggled to recover from recent losses as overall market sentiment stayed fragile.
Investors are closely watching the release of the Federal Reserve’s January meeting minutes later in the day. Additional U.S. economic data, including trade figures and the PCE price index report on Friday, could further shape interest rate expectations.
U.S. industrial production rose 0.7% month-over-month in January, exceeding forecasts for a 0.4% increase. Meanwhile, the personal consumption expenditures (PCE) price index — the Fed’s preferred inflation measure — is expected to provide fresh guidance on the inflation outlook.
Cryptocurrency markets remain highly sensitive to U.S. interest rate expectations due to their reliance on liquidity and accommodative monetary conditions.
Ethereum rose about 1% to $1,968.70, while XRP gained roughly 2% to $1.4616. BNB and Cardano posted modest gains, while Solana slipped 1%. Among meme coins, Dogecoin advanced 1%, and $TRUMP climbed more than 5%.
